The Finance & Leasing Association (FLA) has called on
government to extend the Enterprise Finance Guarantee to include
asset finance as it seeks to boost business lending.
The move is part of FLA’s response
to Financing a Private Sector Recovery, a government green paper
designed to kick start a consultation on how to drive business
growth.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
FLA chief executive Stephen
Sklaroff welcomed the “positive language about asset finance” used
in the publication.
“It is a long time since we have
heard this sort of positive language about asset finance in an
official government document, and this has to be a good thing. We
have been discussing issues with officials and communicating with
ministers, and it is very positive to see it reflected in this
green paper,” he said.
The green paper anticipates that
asset finance will be “important during the recovery”, while
invoice discounting “could play a crucial role in securing access
to working capital finance during the recovery for many
businesses.”
FLA’s response, to be submitted by
20 September, will focus on the needs of those businesses ready to
invest in new equipment but unable to raise finance, and those not
yet ready to invest. An extension of EFG is designed to help those
ready to invest. For those not ready, FLA will suggest to
government ways to bring forward investment by working with the
asset finance industry.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataJulian Rose, FLA head of asset
finance, said: “Our proposals are intended to help boost business
investment and the jobs that come from it, particularly in the
regions identified by the government as needing extra support, and
for equipment that will reduce carbon emissions.”
Also responding to the consultation
is the Asset Based Finance Association.
CEO Kate Sharp said: “We are
delighted to have been included in the green paper. They even got
the terminology right. We have the perfect product for our times.
Our members are free from toxic debts. We’re a straightforward
industry with strong links to clients.”
The green paper was issued jointly by Vince Cable, secretary of
state for business, innovation and skills and George Osborne,
chancellor of the exchequer, on 26 July.
